China Energy Conservation & Environmental Protection Group (CECEP) will collaborate with the UK’s Seamwell International to build a $1.5bn coal-fired plant in Inner Mongolia, China.

Seamwell president Matthew Idiens said the plant on the YiHe Coal Field will produce power by the end of 2014 or 2015 and will generate 1,000MW of electricity for about 25 years.

Seamwell said this is the first commercial project of its size in the world that will employ carbon-capture technology to collect emissions before combustion and store them permanently underground.

The coal steam will be used to create synthesis gas by igniting it with air and oxygen injection. The gas will be used at a combined cycle power plant after being cleaned.

Seamwell estimates there are 280 billion tons of coal resources available in that region of Inner Mongolia.

The companies will form a 51-49% joint venture led by CECEP and adopt a project finance model for the plant once approvals are received, reports Bloomberg.